Resolution of the Federal Commercial Arbitration Court for the North Caucasus Circuit (the “Court”) dated June 21, 2010 on case No.A53-16841/2009 states that following an inspection the antitrust authority adopted a decision according to which several oil companies are deemed as having violated antitrust legislation as pertains to concerted action aimed at establishing and upholding retail prices/markup on auto gasoline and diesel fuel on the market of the cities of Rostov-na-Donu and Bataisk.

The antitrust authority made the conclusion on concerted action based on establishing the fact of upholding retail prices for gasoline and diesel fuel on the same level. At the same time, the antitrust authority indicated that an economical analysis and assessment of the state of affairs of the competition on the goods market is not required in order to consider the actions of oil companies as being concerted and is the antitrust authority’s right, rather than an obligation.

The Court did not agree with the antitrust authority’s point of view and indicated that the antitrust authority should have provided confirmation of the existence of concerted action by oil companies within a particular goods market and within certain geographical boundaries, in form of an analytical report. In the absence of such confirmation, oil companies cannot be considered as having violated antitrust legislation as pertains to concerted action aimed at establishing and upholding retail prices/markup on auto gasoline and diesel fuel on the local markets of the cities of Rostov-na-Donu and Bataisk.

The Court reached this decision taking into account the legal standpoint of the Supreme Commercial Arbitration Court of the Russian Federation, that when proving the concerted action of companies the antitrust authority must define the relevant goods market as to its product line, as well as the geographical and level parameters, and conduct an analysis of its state and justify the similarity of actions by the companies acting on this market (Resolution No.15956/08 of the Presidium dated July 14, 2009).

In the event the antitrust authority does not conduct a relevant market analysis, then the company being held liable for concerted action has a chance to successfully dispute the antitrust body’s decision in court.

Resolution of the Federal Commercial Arbitration Court for the North Caucasus Circuit dated June 21, 2010 on case No.A53-16841/2009

Additional notes

Should any questions arise in connection with the above or if you need any additional materials, please contact Senior Attorney Vitaliy Dianov at the Moscow Office of Capital Legal Services.

This Legal Briefing keeps the clients of the Capital Legal Services and other interested parties abreast of changes in legislation that may, to one degree or another, affect their activity or cater to their particular interests. The opinions and commentaries expressed in this Legal Briefing are not legal opinions and cannot replace the necessity of receiving legal consultations or opinions in specific practical situations.

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